January Savings Tips - New Year Cost Reductions - Top 10 Tips
January is traditionally a time to start a new regime and after the credit crunch that embraced 2008, now could be a good time to kick some bad financial habits.
So, after a season of indulgence, why not trim the excess spending and get those finances in shape? If watching the pennies is an alien concept, a good place to start is with a balancing act. Review your most recent bank statement, list all the outgoings, work out your total income to the penny and see where that leaves you. Make a habit of doing this every month, as it’s the first step to taking control of your money.
Once your bank balance is understood, make a start on cutting back. Here are our top ten tips for reducing your running costs:
1. 4-day wait
If you’re tempted to make a sizeable purchase, think it through. Spontaneous shopping can be fun, but can also be unnecessary, so take a few days to consider it first. Ask yourself: do you need it and can you really afford it?
2. Clear the cards
Credit card debt is expensive and can be a big drain on your finances. So, stop using the cards, transfer your balances to 0% deals and concentrate on paying them off.
3. Make a record
A very easy way to assess your expenditure is to write down every penny you spend. You may be surprised how much your daily cappuccino or weekly magazine costs you and listing your outgoings can make it easier to identify where you can make savings.
4. Cut the fuel bills
If you’ve been with the same gas and electricity suppliers for two years or more, shop around. The utilities market is highly competitive and several websites, such as www.uswitch.com, will show you the best deals on offer in your area. Paying by direct debit and managing your accounts online can help you to save even more.
5. Watch the interest
If a store advertises ‘0% interest’ it could be that the interest is actually loaded into the purchase price, so if you’re paying upfront, ask the salesperson for a discount.
6. Make a shopping list
Rather than walking down the aisles of a supermarket making impulse buys, write a shopping list at home so that you know what you actually need and stick to it.
7. Use your pc
Just as businesses use computers to save money, so could you. Make use of your home pc by putting your bank balance on a spreadsheet and sending emails instead of phoning. You could save money by viewing statements and paying bills online, too.
8. Free software
Instead of paying to download anti-virus software or a firewall, check out the free versions available. There are many reputable companies offering software that’s free to download and, while you may not receive as many updates or have access to a helpline, your computer can be protected. Sound advice can be found at www.which.co.uk.
9. Reuse it
Rather than throwing boxes and tins in the recycling bin, could you find a use for them and save some money on storage items? Plastic takeaway cartons make good containers for leftovers, cereal boxes can be trimmed to make file holders and sweet and biscuit tins are great for storing smaller things like pens and screws.
10. Book online
If you’re planning a holiday this year, try booking online. The same holiday could be hundreds of pounds cheaper than via a travel agent and you’ll have the convenience of booking at anytime of day or night.
And if your cost cutting efforts leave you with surplus funds, try building up a stash of cash in a savings account. The regular saver from Teachers Building Society offers an attractive interest rate for a minimum monthly deposit of just £10. For more information, check the website www.teachersbs.co.uk or call 0800 378669.
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